Forbes drops Kylie Jenner from billionaires list

Chase Peterson-Withorn and Madeline Berg of Forbes write about why the magazine has dropped Kylie Jenner from its billionaires list.

Peterson-Withorn and Berg write, “A more realistic accounting of her personal fortune puts it at just under $900 million, despite the headlines surrounding the Coty deal that seemed to confirm her billionaire status. More than a third of that is the estimated $340 million in post-tax cash she would have pocketed from selling a majority of her company. The rest is made up of revised earnings based on her business’ smaller size and a more conservative estimate of its profitability, plus the value of her remaining share of Kylie Cosmetics—which is not only smaller than the Jenners led us to believe but is also worth less now than it was when the deal was announced in November, given the economic effects of the coronavirus.

“Coty’s share price has fallen more than 60% since the deal was struck, and even better-performing competitors like Ulta Beauty and Estée Lauder are still down single digits. Add that to the fact that Wall Street tends to think Coty paid too much to begin with and there is no way to realistically peg Kylie’s net worth above a billion—despite her massive cash-out.

“As usual, we asked the Jenners for input on our numbers. But pressed for answers on the many discrepancies, the typically chatty family did something out of character: They stopped answering our questions.”

Read more here.